Tribune Stock Price Up Amid Reports of Possible Gannett Bid

By: Tribune Co.'s stock rose modestly Monday amid reports that interest in buying the media conglomerate has stepped up, including a potential bid from Gannett Co., the nation's largest newspaper publisher.

After opening 1.8 percent higher following the published reports, Tribune shares were up 45 cents, or 1.4 percent, at $32.48 in afternoon trading on the New York Stock Exchange .

"Gannett kicking the tires -- that's serious stuff," he said. "Gannett doesn't fool around."

Gannett executives visited Chicago last week and listened to presentations on Tribune Co.'s financial situation, the Chicago Tribune reported, citing two unidentified sources. The Wall Street Journal reported on the visit by Gannett executives on Monday, a day after the Tribune's initial report.

According to the Chicago Tribune, Gannett could bid for Tribune's newspaper properties, while the Journal reported that Gannett is interested in the entire company. Tribune's holdings also include the Los Angeles Times, the Chicago Cubs, WGN-TV and several other media outlets. Tribune has said it will decide whether to sell all or parts of the company by the end of the year.

"As we outlined in a press release on Sept. 28, the board plans to make an announcement when the strategic review process is complete, which is expected before the end of the year," Weitman said Monday. "Until the board makes its announcement, we'll have no comment."

In response to unhappiness with its lagging stock price and sagging fortunes, Tribune signaled its willingness to sell all or part of the company in September.

MediaNews and News Corp. declined comment.

Other possible buyers include Burkle and Broad, who had separately expressed interest in buying the Los Angeles Times, but made a joint offer last Wednesday for the entire company.

Greenberg spokesman Mark Corallo confirmed the 81-year-old Greenberg's interest in media companies Monday but declined to elaborate.

"Mr. Greenberg is exploring several options involving media companies," Corallo said. "But we cannot get into details."

Greenberg was forced to resign his AIG post in March 2005 amid an accounting scandal. The Times, citing unidentified people close to Greenberg, said he also has put out feelers about joining other investors.